Crime Economics: Why do people engage in crime?

Introduction

Crime is a problem that continues to affect society around the world. One type of crime is minor offences such as theft.  The NSW Recorded Crime Statistics highlights the rate of crime in New South Wales. With regard to minor offences such as theft, the NSW Recorded Crime Statistics indicate that the level of minor offences have been significantly high over the last five years. For example, illicit drug offenders in 2016-2017, according to NSW Recorded Crime Statistics, were 81,160 (WALES, 2022). On the other hand, it shows that in the last 12 months to 2021, the number of breaking-ins were 18,462. On the other hand, the number of criminal incidents that involved handling of stolen goods was 7,815 (WALES, 2022). However, while the NSW Recorded Crime Statistics show that the rate of minor is significantly high, it also shows that over time, some of these incidents have been reducing. For example, handling of stolen goods incidents reduced from 7,815 to 7,333 in 2022 (WALES, 2022). On the other hand, the illicit drug offenders reduced from 81,160 in 2016-2017 to 62,698 in 2020-2021. This shows that in the last five years, the crime rate, in relation to minor offences has reduced considerably. The question is, why do people engage in crime? What motivates them to engage in criminal activities? This question is examined in this paper.

How individuals make decisions from an economic perspective about whether to commit a crime

From an economic perspective, people make the decision about whether to commit a crime based on the benefit and cost involved. People analyse the benefits that come up with engaging in a crime and the costs they are likely to incur when they engage in that crime. When the benefits are higher than the costs, then people are likely to engage in crime (Jacob, 2011). On the other hand, if the costs supersede the benefits, they make the decision not to engage in crime. For example, in a region that is characterized by low security, people are likely to engage in crime because of the knowledge that they are unlikely to be caught (Jacob, 2011). On the other hand, individuals living in regions with heightened security are unlikely to engage in crime since they know that they are likely to be caught and jailed.

Crime rate in any region can be better be explained by Gary Becker’s model which indicate that a criminal act is chosen and preferred if the expected benefits exceed the expected costs. This includes the costs of legal alternatives (Becker, 1968). Based on the Becker’s model, crime during the pandemic may have been lower because of heightened security which was implemented to limit movement. As such, chances of one being caught committing was significantly higher, meaning that the expected costs were higher than the expected benefits.

Factors that might cause people to commit crime and how these factors can be used to reduce crime

The factors that may cause people to commit crime include poverty, peer pressure, drugs, and unemployment. Poverty may cause people to engage in crime in order to earn a living and provide for their families (Kessler and Reinecke, 2021).  Poor individuals may see crime as the only means of survival. It is for this reason that localities with a high level of poverty normally report a high level of crime.

An individual may also give in to peer pressure to engage in crime. This is particularly the case for teenagers and young adults. Young people normally want to belong to a particular social group (Kessler and Reinecke, 2021).  In order to fit in the social group, most young people opt to act and behave in the similar manner as members of the group. This means that if the social group they want to belong to engages in criminal activities, a young person may also opt to commit crime in order to be accepted in the group.

Unemployment, like poverty, may cause people to commit crime as a means of earning a living and survival. Lastly, drug and crime are significantly related. People who are addicted to drugs may commit crime in order to get financial resources to purchase the drugs (Ajaegbu, 2012). However, in some cases, people commit crime because of the influence of the drugs they have consumed.

The above highlighted causes can be used to reduce crime by addressing them. For example, the government can develop policies that are aimed to lower the level of poverty in society. This will reduce the reliance on crime for survival (Ajaegbu, 2012). Similarly, tackling unemployment can help lower the level of crime in society.

Benefits and incentives of incarceration

One of the benefits of incarceration is it reduces the level of crime which is costly to those affected. Incarceration also helps those who have been jailed to acquire skills through vocational training which enable them to contribute positively to the economy (Abrams, 2012).  On the other hand, the incentive associated with incarceration, from an economic perspective, is the free labour provided by prisoners (Eisenberg, 2016). The state benefits from this labour at zero cost.

Incarceration is effective in reducing crime because it removes criminal elements from society. This lowers the crime rate (Mears et al., 2015). Another reason is it deters people from engaging in crime. Most people who have been incarcerated avoid crime. This thereby lowers the level of crime.

Unintended consequences of incarceration for minor offences  

One of the unintended consequences of incarceration is adverse financial effect for the victims and their families. For example, when a man is incarcerated, his family loses the source of income especially if he was the sole earner in the family (Haskins, 2014). Another unintended consequence is breaking of family ties.  Children are separated from their parents while spouses are isolated. This may have far-reaching consequences.

Policies the government can use to reduce crime

Instead of incarceration, the policies the government can use to reduce crime are hotspot policing and focused deterrence policing. Hotspot policing involves the government deploying more police officers in areas that have been identified as crime hotspots. The high police presence in such areas may discourage people from engaging in crime (Gill et al., 2014). On the other hand, focused deterrence policing involves the government focusing its efforts in dealing with problems that contribute to crime. For example, if the problem identified is drug abuse, the government can focus its effort in lowering drug use in the area in order to lower drug-related criminal activities.

Conclusion

Basically, crime continues to affect society. Some of the causes of crime include poverty, unemployment, and drug use.  One of the strategies used to fight crime is incarceration. While it helps to reduce crime, it also has unintended consequences like negatively financial effects and breaking of family ties. Alternative policies that can thereby be used are hotspot policing and focused deterrence policing.